As the deadline for filing Income Tax Returns (ITR) approaches, taxpayers must be more vigilant than ever about verifying the details in their Annual Information Statement (AIS). According to tax experts, overlooking or ignoring this crucial document can lead to serious consequences—including notices from the Income Tax Department.
Despite the growing awareness about tax compliance, many individuals still confuse Form 26AS with the AIS, leading to incorrect disclosures and potential scrutiny.
What Is the Annual Information Statement (AIS)?
The Annual Information Statement (AIS) is a comprehensive financial report issued by the Income Tax Department. It captures a taxpayer’s complete financial footprint for a given financial year. This includes details such as:
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Salary received
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Interest earned from savings and fixed deposits
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Dividends from investments
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Stock market and mutual fund transactions
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High-value purchases
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Foreign remittances
Essentially, AIS consolidates various income sources and significant transactions, providing a detailed snapshot of your financial activities. Taxpayers can download it from the Income Tax e-filing portal.
Why Checking AIS Before Filing ITR Is Crucial
Tax professionals strongly advise every taxpayer to carefully cross-check their AIS before filing their income tax return. The reason? The AIS may sometimes contain incorrect or outdated entries—such as wrongly reported transactions, duplicate entries, or missing updates from banks and financial institutions.
If such errors go unnoticed and incorrect data is reported in the ITR, the taxpayer could receive a notice from the Income Tax Department asking for clarifications or additional documents. In worst-case scenarios, this could even lead to penalties or delayed refunds.
If you find discrepancies in your AIS, the Income Tax portal allows you to raise an online correction request. It’s always better to resolve such mismatches before submitting your return rather than explaining them afterward to tax authorities.
Two Parts of the AIS: What It Covers
The AIS is divided into two main sections:
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Part A includes general information such as PAN, masked Aadhaar number, name, date of birth, and contact details.
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Part B contains comprehensive financial information including TDS/TCS details, interest income, dividend income, overseas remittances, and other reportable financial transactions.
In total, the Central Board of Direct Taxes (CBDT) has listed 57 types of incomes and expenditures that can be reflected in your AIS.
AIS vs Form 26AS: Key Differences
One of the biggest confusions taxpayers face is distinguishing between Form 26AS and AIS. Here’s the difference:
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Form 26AS includes tax deducted at source (TDS), tax collected at source (TCS), advance tax paid, and high-value transactions.
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AIS, on the other hand, offers a more detailed picture and includes additional data like savings interest, dividend income, mutual fund transactions, and even purchases made through credit cards.
Tax experts recommend that both AIS and Form 26AS should be downloaded and reviewed before filing your ITR. Cross-verifying both forms ensures that your return is accurate and consistent with the information the tax department already has.
What Happens If You Don’t Check Your AIS?
If you skip reviewing your AIS and unknowingly submit incorrect or incomplete data in your ITR, you could receive a compliance notice. The tax department may ask for clarification regarding mismatched income, unreported investments, or foreign remittances. In some cases, such errors may trigger a detailed audit or delay in processing your return and issuing refunds.
Final Word
As the financial year comes to a close, taking time to review your Annual Information Statement (AIS) is no longer optional—it’s a vital step in the ITR filing process. Don't assume that your tax data is correct by default. Log in to the e-filing portal, download your AIS and Form 26AS, and cross-check all financial entries. Doing so could save you from unnecessary stress, tax notices, or even penalties.
